Updated for 2025/26
£120,000 vs £150,000 Salary Comparison
Compare a £120,000 salary against £150,000. Find out exactly how much more (or less) you will take home after tax.
Gross Difference
+£30,000
per year
Take Home Extra
+£1,260.75
per month
You Keep
50%
of the raise
5-Year Gain
+£75,645
cumulative
Senior Leadership Compensation
At this level, tax efficiency becomes crucial. Between £100,000.00-£125,140.00, you face an effective 60% marginal rate as personal allowance is withdrawn.
- The £100k-£125k "trap" means earning £100k often leaves you with more than £115k
- Employer pension contributions can reduce taxable income below key thresholds
- Consider spreading bonuses across tax years where possible
- Professional tax advice typically pays for itself at this level
Compare Salaries
Enter multiple salaries to compare take-home pay for 2025/26
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Comparison Results
| Metric | £120,000 | £150,000 | Difference |
|---|---|---|---|
| Gross Salary | £120,000 | £150,000 | £30,000 |
| Income Tax | £39,432 | £53,703 | £14,271 |
| National Insurance | £4,411 | £5,011 | £600 |
| Pension | £0 | £0 | £0 |
| Take-Home Pay (Yearly) | £76,157 | £91,286 | £15,129 |
| Take-Home (Monthly) | £6,346 | £7,607 | £1,261 |
| Effective Tax Rate | 36.5% | 39.1% | 2.6% |
£120,000
Gross£120,000
Take-Home£76,157
You Keep63.5%
£150,000
Gross£150,000
Take-Home£91,286
You Keep60.9%
Tax Band Analysis
Understanding where your money goes
£120,000
Tax BandHigher Rate
Marginal Rate40%
Income Tax£39,432.00
National Insurance£4,410.60
Take Home (Monthly)£6,346.45
£150,000
Tax BandAdditional Rate
Marginal Rate45%
Income Tax£53,703.00
National Insurance£5,010.60
Take Home (Monthly)£7,607.20
Tax Band Change: This salary increase crosses from the Higher Rate (40%) into the Additional Rate (45%). The portion above £125,140.00 will be taxed at the higher rate.
What £1,260.75 Extra Buys You
Real-world value of the take-home difference
Monthly Subscriptions
Netflix, Spotify, gym - £100.00/mo
Weekend Breaks
1-2 UK getaways per month at this budget
Savings Boost
£15,129.00/year extra into savings or investments
Car Payment
Could cover a decent car on PCP or lease
Full Comparison: £120,000 vs £150,000
£120,000
- Gross Pay£120,000.00
- Take Home (Year)£76,157.40
- Take Home (Month)£6,346.45
- Effective Tax Rate36.5%
£150,000
- Gross Pay£150,000.00
- Take Home (Year)£91,286.40
- Take Home (Month)£7,607.20
- Effective Tax Rate39.1%
The difference in take-home pay is £15,129 per year, which works out to £1,260.75 per month.